Running a business using legacy systems and traditional, siloed workflows may have been viable in the past, but in today’s challenging market (one which is heavily digitised and characterised by increased globalisation and accelerated ‘tech connectivity’), businesses are painfully aware of the leading tenet of Darwinism – survival not just of the fittest, but of the most adaptable.
Classic leadership, such as that outlined in Good to Great, emphasises the importance of the human element for business and organisational success. James Collins’ argument that “level 5 leaders start by getting the right people on the bus, the right people off the bus, and the right people in the right seats” still rings true, even in today’s technology-driven workplaces. However, true success now stems from achieving the optimum blend of the personal and the technological.
This comes at a time when not only is the rapid pace of technological change creating challenges, but the structure of the workforce is in flux. Millennials now occupy the largest percentage of the EU workforce at over 55%. By 2030, this group of hyper-connected, tech savvy individuals will make up 75% of the workforce. Not only will this drive technological adaptation, but research has shown that Millennial’s expectations and preferences drive a very different kind of workplace. This will create new challenges for leaders in communicating, managing, and leading their multi-generational workforce.
Even in the pre-COVID world, remote work was a growing trend; the number of employers offering a WFH option has grown by 40% in the past five years. Whilst during lockdown this has risen to 95%, what will happen in a post-COVID environment remains to be seen (my guess is we will see a significant uplift on previous figures). For many businesses, having seen it is possible to work effectively remotely, is now the time to shift to a more competitive, agile business model?
Whilst agility is a crucial component of remaining competitive in a rapidly evolving world, it is not the whole story. Even the most thorough transformation programme (modernising operational protocol, strategy, and processes) will not magically improve the bottom line. For true success, it is critical that leaders adapt in tandem with their businesses and that they strategically position their organisations to thrive.
What do the leaders of tomorrow look like?
Reimagining a business to prepare for future challenges (particularly out of necessity) means embracing technological improvements be they in the areas of AI, big Data, or automation. However, this might just be the ‘nuts and bolts’ of an operation as opposed to genuine transformation. More importantly is the process of adapting and flexing leadership and management styles to suit both the new technologies and the changing priorities of the workforce.
On a human level, effective future-proof leadership is one which shows a deep understanding of employee motivations and preferences, beyond the metrics. It is something that we see all too often, where a business is failing. Often this can be traced back to leadership issues where an over-emphasis on strategy has resulted in micromanaging and a spiral of poor performance. Future leaders must be prepared to take a ‘hands off’ approach to let their workers flourish, focusing instead on cultivating a thriving culture.
Building an effective workplace culture
The Results Pyramid Model suggests that results stem from the actions of the individual, which have been instructed by their beliefs, which, at its most fundamental level, have been shaped by their experiences. The truth of this model is that every result or outcome – good or bad – can be traced back to individual experience. This explains why individuals participate in altruistic actions, such as volunteering, or giving to charity. Great leadership, then, is one which taps into an individual’s beliefs and invests them in the outcome. Setting a great culture encourages employees to self-select the actions which will offer the optimum results. Employees feel trusted, valued, and more committed to their purpose within the organisation.
Trust is the cornerstone of the leaders of the future. Employees who feel valued and trusted at work report feeling ‘happier’ at work. Not only is this great for the employee and atmosphere in the workplace, but according to the Partners In Leadership (Happiness at Work Survey), 85% of employees who feel happy at work report taking more initiative, while 73% say they are better collaborators. Nearly 50% claim that they care more about their work. In turn, this led to a statistically higher likelihood of accomplishing organisational goals. While ‘old school’ management focuses purely on controlling actions to achieve results, the leaders of the future focus more on the experience and beliefs driving those actions, creating a more invested, committed workforce.
Future leaders are ready for the workplace of tomorrow
Whilst we must not underestimate the importance of embracing smart digital tools, the leaders of the future need to focus on more than just technology. Digital tools can connect distanced workforces and enhance cultural harmony. Without an overhaul of leadership styles however such transformations are unlikely to be successful. Ensuring a business continues to thrive and remains viable in the high tech globalised, competitive markets of the future demands that leaders expend far less energy ensuring that every box is ticked on every employees' "to-do" list, and much more energy providing employees with experiences that inspire higher levels of engagement and personal accountability. At Norman Broadbent, we understand that your key differentiator in an often-crowded marketplace, is your people, and that higher levels of engagement is the foundation for organisational success.
To drive home the importance of effective leadership, consider this: industry leaders report that managers account for 70% of the variance in team engagement levels. Your leadership style may well be the single most important factor affecting your bottom line. Sustaining top line success necessitates that leaders move away from traditional micro-level performance management. The leader of the future will be an expert in ‘cultural management’, able to foster and align employee mindsets thus achieving critical organisational goals.
If you would like to confidentially discuss how Norman Broadbent Group could help you overcome your business or people challenges, please contact Nick Behan on +44 (0) 0207 484 0106 or via nick.behan@normanbroadbent.com